Road to India@100: Even the sky is not the limit anymore

November 18, 2022, will forever be etched as a memorable day in the history of the Indian space sector thanks to the successful launch of Vikram-S—the first privately built rocket—by Skyroot Aerospace from the Indian Space Research Organisation’s spaceport at Satish Dhawan Space Centre in Andhra Pradesh. The success of Mission Prarambh has ushered in a new era for the Indian space sector. It signifies a new dawn for public-private cooperation in enriching the sector.

Going back 50 years, it was the launch of India’s first indigenous rocket, Rohini-75, on November 20, 1967, that marked a new start. There has been no looking back since, thanks to the leadership of ISRO and the unwavering support of the government. Today, India is among the top few space-faring nations in the world.

However, we all know that despite being a major space-faring nation, India accounts for only about 2 per cent of the global space economy. This is about to change. With the liberalisation of the sector, new entrants from the private sector have already begun to gain global attention. The surge in space activities with the participation of private players is likely to push up India’s ranking. The world is also looking at India as the next big destination in the sector.

Globally, there are going to be several opportunities across domains in the next 25 years. We are entering into a new era for the industry—from extra-terrestrial exploration to declining launch costs—the space sector is truly taking off for newer orbits. In this era, the opportunity for private industry is immense. Per a report from Morgan Stanley, the global space economy is expected to grow to $1 trillion by 2040.

The Indian space sector, too, is undergoing a sea change post the announcement of the space sector reforms. The unprecedented rise in India’s space start-ups hints at a revolution brewing on the horizon. The number of space start-ups in the country has gone up by more than 200 per cent in the past two years, and they number over 150 now. Traditional MSME vendors to ISRO are also diversifying by going up the value chain. For instance, a private consortium has taken a giant step to manufacture ISRO’s workhorse, the polar satellite launch vehicle (PSLV). Investor interest is also growing, with total investments into the sector crossing $110 million in 2022, which is more than the total investments till 2021. Admittedly, these figures compared to the global numbers are very small, but they reflect the rising confidence of investors in India.

Space activity across segments is gaining momentum in India. We must seize this opportunity to earn our rightful share in the global space economy. While upstream activities are getting higher attention, the midstream and downstream activities are also expanding. We have the potential to lead in downstream applications backed by India’s strength in advanced IT and data skills. This expertise can have wide applications in monitoring changing climate, extreme weather, use of natural resources, etc., thereby creating new economic opportunities and positively impacting the lives of people. And thus reducing the space between spacetech and people.

Given the emerging opportunities, global firms are also planning to expand their presence in India. Global partnerships will play a crucial role in accessing tech, markets, investment opportunities, and talent. The space policy expected to be announced soon will provide the framework for private sector participation for domestic and foreign firms.

India can become the most connected country in the world. The multiple low-earth orbit constellations being planned will connect every nook and corner of the country digitally. And soon, we will have universal access to internet available at very affordable prices.

Focus on R&D and manufacturing of advanced materials, and on space-grade electronics is a must for attaining Aatmanirbharta (self-reliance) in the space sector. India has the potential to be the next space manufacturing hub for the world, particularly for small satellites and space-grade components. Various state governments are already looking to set up dedicated plug and play space parks with attractive incentives.

Another area where India can emerge as the leader is launch services. With launch costs reducing drastically, India could become the most reliable partner for least-cost launches. However, a lot of work still needs to be done to achieve this goal. A whole-of-nation approach based on defined national priorities aligned with the Indian space policy, FDI policy and other regulations will be a must to ensure necessary institutional and policy support.

Disproportionate investment in capacities and capital-intensive tech will be required to develop high-end complex spacetech within India. Already, ISRO is going all out to help the private sector by giving access to its ecosystem, including tech, infrastructure and expertise. Fully indigenous tech is being made available for the private players to scale and commercialise, such as the satellite design and fabrication technology of IMS-1 (a low-cost micro-satellite imaging mission of ISRO). Private sector must come forward to build in India for the world.

Developing complex spacetech requires massive investments. While, after the first demonstrable success of Indian start-ups, investments in the Indian space sector have gained momentum, there is still a long way to go before we see a ‘SpaceX moment’ in the Indian space start-up ecosystem. Investors need to gain more confidence in the Indian space start-up ecosystem. At the same time, Indian start-ups need to communicate their story well to attract investments. The revised FDI policy is also expected to facilitate FDI into Indian space start-ups.

Additionally, India Inc. will need to work on the competitiveness of its offerings/solutions and play its marketing game well. We have world-class solutions to offer and we need to market them strategically.

To enable the Indian space ecosystem as outlined above, the government has set up IN-SPACe as an autonomous body under the Department of Space to orchestrate the transition to a new space era. Both IN-SPACe and ISRO have been working closely to support the private sector and boost the private Indian space economy.

The world around us is moving fast and we need to keep pace with it. There is a huge opportunity in the sector and India Inc. must pull up its socks to make the most of it. We need to dream big, and dream as if even the sky is not the limit anymore! 

The writer is Chairman of IN-SPACe